Understanding $MOVE Price Surge: Who Benefits and How?
When a new coin like $MOVE is listed on an exchange, its price often skyrockets in seconds. Here's why this happens and who benefits:
1. How Prices Are Set
Pre-Listing Prices: Early investors or pre-sale participants buy coins at low prices (e.g., $0.02–$0.10).
High-Frequency Traders: Bots and fast traders secure cheap prices at listing, leaving retail buyers with higher prices.
2. Why Prices Skyrocket
Demand Surge: Hype and FOMO drive massive buying immediately after the coin is listed.
Low Liquidity: Thin order books lead to extreme volatility, pushing prices up.
3. Who Gets the 4000% Gains?
Seed Investors: Bought at very low prices before the listing.
Bots and Traders: They act within milliseconds, capitalizing on price differences.
4. Challenges for Retail Traders
Price Slippage: Retail orders often execute at much higher prices due to delays.
Market Volatility: Rapid price swings make it easy to lose money if you're not cautious.
Key Takeaway: Early investors and bots benefit the most during initial listings. Retail traders should avoid FOMO and focus on understanding tokenomics, pre-sale data, and risks before jumping in.
Let me know if you want strategies to handle such scenarios better!